Experts predict the flow of investments to Egypt in 2018 !

The Reuters news agency reported that economists predicted the improvement of foreign direct investment flowing to Egypt in 2018, especially in the second half of the year after the completion of the presidential elections.

The presidential election is expected to take place in April 2018. Egyptian President Abdel Fattah al-Sisi, who was elected in 2014, has yet to announce his intention to remain in office, but is widely likely to try to win a second and final term. The President of the State shall have a maximum of four years.

Foreign investments in Egypt reached $ 7.9 billion in the fiscal year 2016-2017, which ended June 30, compared to $ 6.8 billion in 2015-2016.

"Oil and gas investments do not pass through the Ministry of Investment but at a higher political level," said Numan Khalid, an economist at CII Capital.

Khalid attributed most of the foreign investments in the oil sector during the past years to "the absence of any expectations of exchange rates in Egypt a year ago, interest rates on loans or even the tax system and energy prices," noting that 2018 is the most obvious year of 2016 and 2017 because of stability Relative to the exchange rate of the Egyptian pound against foreign currencies.

Egypt is attracting foreign direct investment in the oil and gas sector through bidding on international oil companies. The Egyptian president's meetings with the heads of international companies have accelerated and attracted many of these investments to the country.

"The inflow of foreign investment in Egypt during the second half of this year, especially in the last quarter, is expected to reach between $ 8 billion and $ 9 billion," said Radwa Al Suweifi, head of research at Pharos Holding. General.

"We will see the activation of the new investment law during this year, which will lead to the emergence of sectors attractive to invest in Egypt more than the energy sector starting in 2019, especially the industrial sector," said Alia Mamdouh, senior economist at Beltone Investment Bank.

"We expect energy investments to account for about 80% of this year's projected investment of $ 10.5 billion, and the investor needs only confidence, clarity of vision and a lack of bureaucracy in the procedures."

The Egyptian government has implemented an economic reform program since 2016, including VAT, liberalization of the exchange rate, reduction of subsidies for electricity and petroleum products in order to revive the economy, return it to growth, and reduce imports of non-essential goods. The program included a new investment law and reforms in the income tax law and a bankruptcy law.

Source
arabic.rt